Trump blocks Chinese buyout of Lattice Semiconductor

On Wednesday, Trump issued an executive order blocking the $1.3 billion acquisition of Lattice by Canyon Bridge Capital Partners - a Chinese government-financed firm - stating there is "credible evidence" leading him to believe that the Chinese firm could "take action that threatens to impair the national security of the United States". Canyon Bridge is also US -based, but its funding is China-based. Then in August, he directed the U.S. Trade Representative to consider investigating China over suspected intellectual-property theft.

Editor's Remarks: This is only the fourth time in 27 years that a US President has blocked a foreign takeover on national security grounds.

The outcome of the Lattice case does not mark a decisive change in USA investment policy or CFIUS practice and successful acquisitions are still possible.

The state news outlet said in a commentary on Saturday that "Chinese investment is not a Trojan horse" and that Trump's decision to block a deal was "penny wise and pound foolish".

The national-security risks posed by the deal included "the Chinese government's role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States government, and the use of Lattice products by the United States government", the White House said. Accordingly, non-U.S. investments in any segment of the semiconductor industry (or in any advanced technology company) merits caution and planning.

News reports and President Trump's decision indicate that Lattice's products and technologies had been and were being used in specific military applications. The message is clear, Lattice is not allowed to be sold to a Chinese company.

Lattice was Canyon Bridge's first acquisition target. Canyon Bridge is investing on behalf of a Chinese venture-capital fund that is sponsored by China Reform Fund Management, a state-owned asset manager. Chinese investors should assume that the CFIUS process could take six months or more to complete from the date a deal is signed.

And the Trump administration wasn't too keen on having a US government's supply of chips partly relying on a foreign power.

"Any transaction or other device entered into or employed for the objective of, or with the effect of, avoiding or circumventing this order is prohibited", says the official White House Order.

Trump has expressed concern about the status of USA manufacturing and its ability to meet national security needs. "Lattice's future remains bright".

RELATED NEWS

Trudeau Steps Up Legal War On Boeing
Boeing claims Bombardier sold the planes for US$19 million each, despite them costing around US$33 million each to build. He said: " Bombardier is the predominant player in, and at the centre of, the aerospace "cluster" in Northern Ireland". 9/20/2017

British Columbia to ban corporate, union political donations
The allowance diminishes in value over time and is meant to help political parties transition to the new campaign finance rules. Still, elections cost money, so where will that come from? A similar measure was in place federally in the past. 9/20/2017

Chelsea boss Conte: Run of red-cards is 'strange'
This week Crooks selected Kolasinac, however the pundit has raised plenty of eyebrows with his description of the Bosnian. DAVID LUIZ has been accused of wetting himself before his horror tackle on Sead Kolasinac. 9/20/2017

Kenya's judges who nullified election face 'savage' threats
The court's decision on the August 8 election was hailed as historic on a continent where judges frequently bow to political will. Kenya's police chief Joseph Boinnet has repeatedly ignored calls by the judiciary to act on the threats, Maraga said. 9/20/2017

Over 40 Million People Caught in Modern Slavery
In many cases, the products they made and the services they provided ended up in seemingly legitimate commercial channels. About 15.4 million are forced into marriage, more than a third of whom are under 18, while a majority are girls under 15. 9/20/2017

Hideo Kojima's Zone of the Enders returns to PlayStation
It's scheduled to launch in Japan in Spring 2018, but no word on if it will come to the west around the same time (if at all). Gamers will be able to experience the thrill of piloting a high speed giant robot for themselves at Tokyo Game Show 2017. 9/20/2017

AMBER ALERT ISSUED: Three Girls Reported Abducted
Adia and Lillian are roughly 4 feet tall and weigh approximately 54 pounds, with shoulder length brown hair. The Clay County Sheriff's Office said the three children were located in Sanborn, Iowa, Tuesday afternoon. 9/20/2017

History: First US Air Force base in Israel
The U.S. has a history of donating billions of dollars of taxpayer money to fund Israel's military over decades. Exact sizes aren't clear, but estimates are that several dozen USA soldiers will remain at the base. 9/20/2017